- BT (a BT Group plc subsidiary) is the UK’s lead broadband Internet provider and fixed line telecommunications operator that:
- Provides global telecommunication services in more than 170 countries worldwide;
- Participates in London and New York Stock Exchange and is listed in the FTSE 100 Index;
- Provides most British fixed-line telephones with local loop and trunk network connections, and telephone exchanges;
- Operates more than 28 million UK telephone lines;
- Owns largest nationwide telecom coverage and penetration;
- On the basis of Universal Service Obligation, provides public call boxes fixed telephone lines nationwide;
- Extends communication operations on global markets through acquisition and re-branding of the domestic and overseas businesses, specifically: BT Infonet, 2005; BT Radianz, 2006; Dabs.com, 2006; PlusNet plc, 2007;
- International Network Services Inc, 2007; Comsat International, 2007; Wire One Communications, 2008; and Ribbit, 2008.
- Invests in new Internet Protocol century network 21CN.
- BT main weaknesses are associated with the following factors:
- Underdevelopment of mobile business and lack of fixed-mobile convergence;
- Lack of business strategy towards the promotion of ‘cheap voice calls’;
- Occasional payphone problem due to BT operations;
- General complaints about customer services provided by BT.
- Transition to the new century network (21CN) in 2010 including the transfer of half of its customers by 2008;
- Expansion to more profitable products and services that are less regulated;
- Emphasis on telecommunications and IT solutions and broadband internet services;
- Extension of ‘BT Tradespace’ online service platform to serve small businesses;
- Advancement of ‘BT Vision’ to provide high-quality broadband television services;
- Expansion of Internet smart-phone services.
- Expansion of services on highly-dynamic UK telecom market and internationally;
- Contracting more overseas partners to further its global expansion;
- Fierce competition from BT’s main rivals: Carphone Warehouse; Google; O2; Orange and Vodafone);
- Global financial crisis;
- Workforce and management shortages in BT core business divisions, including retail, wholesale, Openreach, and BT Global Services);
- Overall increase of redemptions;
- Potential risk for BT bond markets;
- Fund management crisis with 6.6 b. slumps;
- Operating markets liquidity;
- Recent behavioural targeting scandal;
- Inability to foresee the successfulness of long-term projects considering current economic fluctuations.
Source: Essay UK - http://aninvestorsjourney.com/guides/swot-analyses/british-telecom-swot-analysis.php